Apple 2015 Annual Report Download - page 33

Capital Assets
The Company’s capital expenditures were $11.2 billion during 2015. The Company anticipates utilizing approximately $15.0 billion for capital
expenditures during 2016, which includes product tooling and manufacturing process equipment; data centers; corporate facilities and
infrastructure, including information systems hardware, software and enhancements; and retail store facilities.
Debt
In 2014, the Board of Directors authorized the Company to issue unsecured short-term promissory notes (“Commercial Paper”) pursuant
to a commercial paper program. The Company intends to use the net proceeds from the commercial paper program for general corporate
purposes, including dividends and share repurchases. As of September 26, 2015, the Company had $8.5 billion of Commercial Paper
outstanding, with a weighted-average interest rate of 0.14% and maturities generally less than nine months.
As of September 26, 2015, the Company has outstanding floating- and fixed-rate notes for an aggregate principal amount of $55.7 billion
(collectively the “Notes”). The Company has entered, and in the future may enter, into interest rate swaps to manage interest rate risk on
the Notes. In addition, the Company has entered, and in the future may enter, into currency swaps to manage foreign currency risk on the
Notes. The future principal payments for the Company’s Notes as of September 26, 2015 are as follows (in millions):
2016 $ 2,500
2017 3,500
2018 6,000
2019 3,775
2020 5,581
Thereafter 34,345
Total term debt $ 55,701
Further information regarding the Company’s debt issuances and related hedging activity can be found in Part II, Item 8 of this Form 10-K
in the Notes to the Consolidated Financial Statements in Note 2, “Financial Instruments” and Note 6, “Debt.”
Capital Return Program
In April 2015, the Company’s Board of Directors increased the share repurchase program authorization from $90 billion to $140 billion of
the Company’s common stock, increasing the expected total size of the capital return program to $200 billion. The Company expects to
execute the capital return program by the end of March 2017 by paying dividends and dividend equivalents, repurchasing shares and
remitting withheld taxes related to net share settlement of restricted stock units. To assist in funding its capital return program, the
Company expects to continue to access the debt markets, both domestically and internationally. As of September 26, 2015, $104 billion
of the share repurchase program has been utilized. The Company’s share repurchase program does not obligate it to acquire any specific
number of shares. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under
plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.
In April 2015, the Company’s Board of Directors raised the quarterly cash dividend by 11%. The Company plans to increase its dividend
on an annual basis subject to declaration by the Board of Directors.
The following table presents the Company’s dividends, dividend equivalents, share repurchases and net share settlement activity from the
start of the capital return program in August 2012 through September 26, 2015 (in millions):
Dividends and
Dividend
Equivalents Paid Accelerated Share Repurchases
Open Market
Share
Repurchases
Taxes Related
to Settlement of
Equity Awards Total
2015 $ 11,561 $ 6,000 $ 30,026 $ 1,499 $ 49,086
2014 11,126 21,000 24,000 1,158 57,284
2013 10,564 13,950 9,000 1,082 34,596
2012 2,488 0 0 56 2,544
Total $ 35,739 $ 40,950 $ 63,026 $ 3,795 $ 143,510
Apple Inc. | 2015 Form 10-K | 31